Construction machinery manufacturers saw robust second-quarter earnings fueled by infrastructure and mining activity in Asia and Latin America, while North America rental companies and contractors replaced aging and obsolete fleets for a small but significant uptick in domestic sales. Many contractors sold off equipment during the downturn as work became scarce, opting to rent rather than own.Caterpillar Inc.'s second-quarter earnings soared to $1.02 billion, a 44% increase over last year, and the company is spending over $1 billion to ramp-up production in China. Volvo Construction Equipment strengthened its position in wheel-loader and excavator sales in China in the second quarter,
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.